Infrastructure Minister Jeremy Rockliff is refusing to say when he learned of the difficulties plaguing the company selected to build the next Spirit of Tasmania ferries. Contracted shipbuilder Flensburger Schiffbau-Gesellschaf is currently in a “difficult financial situation,” and last year was more than six months late delivering a passenger and freight vessel to Irish Ferries, causing passenger inconvenience and outrage over cancelled sailings in the peak summer period. The hull of delayed Irish ship the Y. B. Yeats was launched in January 2018, and by this point the completion date of the ferry had already been pushed back from May to July. TT-Line signed the $700 million dollar build contract with FSG in May 2018, raising questions about when the company became aware of issues with the shipyard. When the Y. B. Yeats finally arrived in Dublin in December 2018, industry reports said FSG was hit with hefty penalties for the delay. On Friday Mr Rockliff said TT-Line’s contract with FSG is still in place, however the company is also preparing for if the contract falls through. “They will be doing due diligence in terms of that eventuality but we’re not at that point at this stage,” Mr Rockliff said. A TT-Line representative refused to comment on the progress of discussions TT-Line is holding with two alternative shipbuilders. Labor infrastructure spokesman David O’Byrne said, as this is one of the biggest infrastructure investments in Tasmania’s history, the cabinet should be given a full briefing on this matter and should be kept up to date with the progress. “Time is of the essence,” Mr O’Byrne said. “TT-Line needs to conduct an urgent review of the situation with FSG and get a commitment that the new vessels will be delivered on time and on budget and that no taxpayers funds will be put at risk. “This government has a history of hands-off management that ends up in poor outcomes

Call for action on TT-Line deal with financially troubled shipbuilder

DEAL: Flensburger Schiffbau-Gesellschaf secured the $700 million contract for two new Spirit of Tasmania vessels in May 2018 when TT-Line endorsed the shipyard over other shortlisted builders.

Infrastructure Minister Jeremy Rockliff is refusing to say when he learned of the difficulties plaguing the company selected to build the next Spirit of Tasmania ferries.

Contracted shipbuilder Flensburger Schiffbau-Gesellschaf is currently in a “difficult financial situation,” and last year was more than six months late delivering a passenger and freight vessel to Irish Ferries, causing passenger inconvenience and outrage over cancelled sailings in the peak summer period.

The hull of delayed Irish ship the Y. B. Yeats was launched in January 2018, and by this point the completion date of the ferry had already been pushed back from May to July.

TT-Line signed the $700 million dollar build contract with FSG in May 2018, raising questions about when the company became aware of issues with the shipyard.

When the Y. B. Yeats finally arrived in Dublin in December 2018, industry reports said FSG was hit with hefty penalties for the delay.

On Friday Mr Rockliff said TT-Line’s contract with FSG is still in place, however the company is also preparing for if the contract falls through.

“They will be doing due diligence in terms of that eventuality but we’re not at that point at this stage,” Mr Rockliff said.

A TT-Line representative refused to comment on the progress of discussions TT-Line is holding with two alternative shipbuilders.

Labor infrastructure spokesman David O’Byrne said, as this is one of the biggest infrastructure investments in Tasmania’s history, the cabinet should be given a full briefing on this matter and should be kept up to date with the progress.

“Time is of the essence,” Mr O’Byrne said.

“TT-Line needs to conduct an urgent review of the situation with FSG and get a commitment that the new vessels will be delivered on time and on budget and that no taxpayers funds will be put at risk.

“This government has a history of hands-off management that ends up in poor outcomes